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Morimatsu International Holdings Company Limited (HK:2155)
:2155
Hong Kong Market
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Morimatsu International Holdings Company Limited (2155) AI Stock Analysis

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HK:2155

Morimatsu International Holdings Company Limited

(2155)

Rating:77Outperform
Price Target:
HK$10.00
▲(7.30% Upside)
Morimatsu International Holdings' strong financial health and bullish technical indicators are the primary drivers of its stock score. Despite the overbought technical signals, the company's solid profitability and moderate valuation balance the potential risks, resulting in a robust overall score.

Morimatsu International Holdings Company Limited (2155) vs. iShares MSCI Hong Kong ETF (EWH)

Morimatsu International Holdings Company Limited Business Overview & Revenue Model

Company DescriptionMorimatsu International Holdings Company Limited (2155) is a diversified industrial company engaged primarily in the manufacturing and engineering sectors. The company specializes in providing process equipment and pressure vessels, serving industries such as pharmaceuticals, chemicals, and energy. Morimatsu International is known for its expertise in designing and delivering integrated solutions that meet the complex needs of its clients globally.
How the Company Makes MoneyMorimatsu International Holdings Company Limited generates revenue through the design, manufacturing, and sale of process equipment and pressure vessels. The company's key revenue streams include contracts with pharmaceutical, chemical, and energy companies that require specialized equipment for their operations. Additionally, Morimatsu benefits from long-term partnerships and collaborations with major industrial players, which enhance its market reach and provide sustained project flows. The company focuses on delivering customized solutions that address specific client needs, often resulting in repeat business and ongoing maintenance contracts. Furthermore, Morimatsu invests in research and development to innovate its product offerings, ensuring a competitive edge in the industry.

Morimatsu International Holdings Company Limited Financial Statement Overview

Summary
Morimatsu International Holdings shows strong financial performance with consistent revenue growth and healthy profitability margins. The company has a solid net profit margin of 10.6% and a low debt-to-equity ratio of 0.06, indicating strong financial stability. However, slight declines in revenue and net income compared to 2023 suggest some challenges.
Income Statement
85
Very Positive
Morimatsu International Holdings demonstrated strong financial performance with consistent revenue growth and healthy profitability margins over the years. Gross profit margin for 2024 stood at 29.7%, showing efficiency in cost management. The company maintained a solid net profit margin of 10.6% in 2024, indicating strong profitability. However, slight declines in revenue and net income compared to 2023 suggest challenges in sustaining top-line growth.
Balance Sheet
78
Positive
The balance sheet reflects strong financial stability with a low debt-to-equity ratio of 0.06 in 2024, indicating low financial leverage. Return on Equity (ROE) improved to 14.6%, showcasing effective utilization of shareholders' equity. The equity ratio stood at 56.7%, signifying a robust equity base. Despite these strengths, total assets slightly decreased, indicating potential asset management challenges.
Cash Flow
80
Positive
The company displayed significant improvement in free cash flow, growing from a previous period, enhancing liquidity. The operating cash flow to net income ratio was robust at 1.56, highlighting efficient cash generation relative to net income. The free cash flow to net income ratio of 0.98 shows strong cash flow alignment with profitability, though capital expenditure fluctuations reflect ongoing investment activities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.95B7.36B6.49B4.28B2.98B
Gross Profit2.06B2.06B1.79B1.18B844.10M
EBITDA1.12B1.14B890.68M564.95M430.56M
Net Income737.24M844.68M669.27M381.84M289.38M
Balance Sheet
Total Assets8.91B8.93B7.96B5.70B3.03B
Cash, Cash Equivalents and Short-Term Investments2.99B2.23B1.62B1.55B424.43M
Total Debt295.79M384.33M467.40M373.88M446.15M
Total Liabilities3.63B4.54B5.14B3.69B2.04B
Stockholders Equity5.05B4.38B2.82B2.01B998.31M
Cash Flow
Free Cash Flow721.79M100.50M38.09M730.26M25.90M
Operating Cash Flow1.15B671.28M905.15M1.17B155.65M
Investing Cash Flow-765.72M-408.13M-1.15B-448.13M-135.77M
Financing Cash Flow-144.06M506.98M57.05M445.06M-30.61M

Morimatsu International Holdings Company Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.32
Price Trends
50DMA
7.28
Positive
100DMA
6.58
Positive
200DMA
5.68
Positive
Market Momentum
MACD
0.62
Positive
RSI
69.93
Neutral
STOCH
67.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2155, the sentiment is Positive. The current price of 9.32 is above the 20-day moving average (MA) of 8.65, above the 50-day MA of 7.28, and above the 200-day MA of 5.68, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 69.93 is Neutral, neither overbought nor oversold. The STOCH value of 67.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2155.

Morimatsu International Holdings Company Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
€16.15B8.8411.35%3.31%30.12%139.92%
77
Outperform
HK$11.61B13.8915.68%1.61%-7.43%-15.09%
74
Outperform
HK$7.57B11.0314.15%4.32%2.87%17.03%
68
Neutral
€6.93B14.815.40%2.03%8.61%38.69%
58
Neutral
HK$13.63B5.51-2.78%5.71%2.29%-57.50%
56
Neutral
HK$7.49B1,388.100.20%12.45%
48
Neutral
$2.26B-70.25%-9.95%-6348.85%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2155
Morimatsu International Holdings Company Limited
9.32
5.41
138.36%
HK:1133
Harbin Electric Co. Ltd. Class H
7.44
4.92
195.12%
HK:1286
Impro Precision Industries Limited
4.01
2.15
115.82%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.88
1.35
254.05%
HK:0187
Beijing Jingcheng Machinery Electric Co Ltd Class H
5.83
3.79
185.78%
HK:0658
China High Speed Transmission Equipment Group Co
1.38
0.28
25.45%

Morimatsu International Holdings Company Limited Corporate Events

Morimatsu Announces Capital Subscription and Grant of Put Options
Jul 7, 2025

Morimatsu International Holdings Company Limited has announced a transaction involving the subscription of additional registered capital by investors in its non-wholly owned subsidiary, the Target Company. This transaction will increase the registered capital of the Target Company and reduce Morimatsu’s shareholding from approximately 85.09% to 73.99%, constituting a deemed disposal of equity interest. Additionally, the company has granted put options to the investors, allowing them to require Morimatsu or its subsidiaries to purchase equity interests under certain conditions. This move is classified as a discloseable transaction under the Hong Kong Listing Rules, impacting the company’s financial arrangements and stakeholder interests.

Morimatsu International Approves All Resolutions at AGM
Jun 26, 2025

Morimatsu International Holdings Company Limited announced that all proposed resolutions were passed at its Annual General Meeting held on June 26, 2025. The resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and the reappointment of KPMG as the independent auditor. The approval of these resolutions reflects strong shareholder support and positions the company for continued stability and growth.

Morimatsu International Holdings Announces Supplemental Notice for 2025 AGM
Jun 4, 2025

Morimatsu International Holdings Company Limited has announced a supplemental notice for its 2025 Annual General Meeting (AGM) to be held on June 26, 2025, at JW Marriott Hotel Hong Kong, with an option for virtual attendance. A special resolution will be proposed to adopt new Articles of Association, replacing the existing ones, which reflects the company’s ongoing efforts to update its governance structure.

Morimatsu International Announces Board Changes and Proposed Amendments
May 29, 2025

Morimatsu International Holdings Company Limited has announced changes in the composition of its board committees, effective from May 29, 2025. These changes involve Ms. Chan Yuen Sau Kelly and Mr. Kanno Shinichiro swapping roles between the nomination and remuneration committees. The adjustments are in response to upcoming amendments to the Listing Rules and Corporate Governance Code, aimed at enhancing board effectiveness and corporate governance. Additionally, the company proposes amendments to its Articles of Association to align with new legal and regulatory requirements, subject to shareholder approval at the 2025 AGM.

Morimatsu International Holdings Announces Board Composition and Committee Roles
May 29, 2025

Morimatsu International Holdings Company Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board consists of executive directors, a non-executive director who serves as chairman, and independent non-executive directors. Additionally, the company has established three standing board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, with specific directors assigned to each committee.

Morimatsu International Enhances Governance with New Nomination Committee
May 29, 2025

Morimatsu International Holdings Company Limited has established a nomination committee to oversee the appointment and nomination processes within the company. The committee is primarily composed of independent non-executive directors and is required to have at least one member of a different gender. The committee will meet at least once a year, and its resolutions require the approval of more than half of its members. This move is likely to enhance the company’s governance practices by ensuring a diverse and independent oversight in its nomination processes.

Morimatsu Directors Exercise Options and Sell Shares
May 29, 2025

Morimatsu International Holdings Company Limited announced that some of its directors have exercised their pre-IPO share options and subsequently sold a portion of their shares to cover associated costs and taxes. The directors have expressed confidence in the company’s future growth and alignment with shareholder interests, with no current plans for further share disposals, though they may consider acquiring more shares in the future.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025